On 25 May 2007 the Assessment and Licensing Committee (ALC) of the Bermuda Monetary Authority (BMA) commenced operations. The ALC is the internal licensing body of the BMA and considers applications under the Insurance Act, the Bank and Deposit Companies Act, the Trusts (Regulation of Trust Business) Act, the Investment Business Act, and the Investment Funds Act. It is comprised entirely of senior members of the BMA’s oversight team in each of these financial services disciplines.
For applications under the Insurance Act, the ALC replaces the Insurance Admissions Committee, a body consisting predominantly of senior industry participants, which previously undertook this role. All applications regarding the formation, licensing or changes in the licensing of Bermuda registered insurers are now considered by the ALC. This is the second and final phase of internalisation of the incorporation and licensing process for insurance companies, as the assessment and licensing of Class 1 general business insurers (pure captives) was internalised and has been reviewed exclusively by the BMA since the latter part of 2006.
The process of formation, deadlines for submission of application materials and the timescale for a response from the BMA have not changed in any material way under the new system. The ALC will have the ability to call on, when required, further technical expertise from a pool of individuals from the industry who will form a committee called The Technical Advisory Group (TAG). TAG’s role is one of providing advice only, and decisions on applications are vested exclusively with the ALC.
This development is welcomed by all involved in the incorporation and licensing of insurance companies, as it is expected to produce a better result while maintaining the very competitive processing time for company formations that Bermuda enjoyed under the old regime.
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